September 14, 2017 - Athens, Greece - Seanergy Maritime Holdings Corp. (the “Company”) (NASDAQ:SHIP) announced today its financial results for the quarter and six months ended June 30, 2017.
Stamatis Tsantanis, the Company’s Chairman & Chief Executive Officer, stated: “In the first half of the year, charter rates recovered significantly from the historical lows of 2016. As expected, our low operating cost structure helped Seanergy achieve positive operating income in the second quarter of 2017 for the first time since rebuilding our fleet in 2015. This is an important milestone demonstrating our Company’s earnings potential during a positive market trend. It should be noted that, although, during the first half of 2017 Capesize Baltic daily rates have risen by around 146%, compared to the first half of 2016, they have not yet reached mid-cycle levels relative to historical rates and, for that reason, we are optimistic that rate improvements will continue. Our average Capesize time charter equivalent rate for the second quarter of 2017 was $12,720 per day, up 139% as compared to $5,315 per day for the second quarter of 2016 and up 54% sequentially from first quarter of 2017*.
“Furthermore, we are particularly pleased about expanding our fleet at a time of historical market weakness, as the indicative market values of 5-year old secondhand Capesizes have risen by around 40% compared to the end of 2016. The successful execution of our business plan puts us in an advantageous position to capitalize on the long term recovery we expect to see in the dry bulk market.
"In the second quarter, we took delivery of the 2012 Korean built Capesize M/V Partnership, which commenced its 12-18 months’ time charter with a major European utilities company in June at a gross rate of $16,200 per day. Our modern fleet now consists of nine Capesize vessels and two Supramax vessels with a combined cargo carrying capacity of 1.7 million dwt.
“In June 2017, we terminated our At-The-Market equity offering program as we remain committed to optimizing our financing activities so as to best serve the interests of our shareholders. Over the past year we have utilized equity offering proceeds to carry out three vessels’ acquisitions and finance the prepayments for the early termination of a credit facility.
"The combined accretion in value we have created for our shareholders from these transactions is more than $29 million, which is derived from the market value appreciation of the acquisitions and the expected gain due to the early termination and refinancing of one of our facilities.
“Turning to market fundamentals, we expect a steady rise in freight rates and vessel values driven by the increased demand from the end users of dry bulk commodities, and the increase in ton-miles resulting from the expansion of volumes along long-haul trades at a time of a historical reduction in fleet growth.
“We believe Seanergy is well positioned to capitalize on favorable industry trends and we continue to actively pursue additional vessel acquisitions.
“Lastly, we regained compliance with Nasdaq minimum bid price requirement without resorting in reverse stock splits or other dilutive actions.”
* Time charter equivalent (“TCE”) rate is a non-GAAP measure. Please see the reconciliation below of TCE rate to net revenues from vessels, the most directly comparable U.S. GAAP measure.